|Court Approves Sale of 57 Priszm Restaurants|
|Tuesday, 22 May 2012 12:56|
TORONTO — The Priszm Income Fund, a Canadian owner of KFC restaurants, has received court approval for the sale of 57 restaurants in Alberta and Manitoba to Hi-Flyer Food Inc., a Canadian subsidiary of a pre-existing KFC franchisee in the Philippines.
“We are pleased the sale transaction of Priszm's remaining Western Canadian locations has been approved and look forward to completing the necessary lease assignments with Hi-Flyer.
This transaction continues the trend of further diversifying our tenant base and reducing our reliance on Priszm,” said Kevin Salsberg, COO at Scott's REIT, the Fund’s landlord.
Following the completion of this sale, 52 locations (51 locations in Quebec and one in Alberta) will continue to be leased to Priszm.
The company has been operating under the Companies' Creditors Arrangement Act since March. As part of the restructuring, Priszm sold 204 of its restaurants to Soul Restaurants Canada Inc. for $42.8 million, according to The Canadian Press.